The upside to downsizing: what’s the appeal for the over 70s?

The pandemic has caused many people to evaluate their living situation, and has led to the realisation for many over 70s that their home is no longer manageable, prompting more people to downsize.

So what are the benefits of downsizing?

The most obvious benefit to downsizing is the management of property itself. Whether it’s cleaning the bedrooms that are no longer used daily, or keeping everything looking fresh with the decorating, or even the large general upkeep projects outside of the property, having a smaller place means less time spent doing jobs like clearing gutters and more time for things you enjoy!

The financial gain is also a positive for downsizing. Having a smaller place generally means you pay less for utilities, for example having a smaller house needs less energy to heat it and therefore costs less in bills. Your council tax will also be less, which can save a lot of money in just one year.

Another way downsizing can benefit financially, particularly if you are mortgage free, is by releasing some equity from a house sale. If you are selling your house and moving into a smaller property, you are bound to have some money left over from your sale. This is one of the key reasons downsizing has become more popular with the over 70’s. Studies show that more people over 70 are using this equity to pay off any debt and achieve their goals or live their best lives in their retirement.

Downsizing is also a great help to the housing market. Due to the pandemic, there has been a surge of demand for rural family homes, causing a shortage in the market. People looking to downsize are creating the opportunity to buy those beloved homes for families looking to gain some much needed space.

Retirement Village Group has several studies showing that 65% of people have realised that the home they are currently living in is too large for their current life stage and this is a direct response to the pandemic.

The group is calling on the government to abolish any Stamp Duty or tax that comes along with downsizing, for the over 70’s market. This will actively support people making the choice to move into smaller homes and can go a long way to fighting the stigma around downsizing in your 70’s. It would also be a great incentive for someone to move from perhaps a home that has given years of memories, but has become a bit too large for comfort.

Are you looking to downsize but aren’t sure where to start? Get in touch with us, and we can talk you through the process.